Correlation Between Industrial Bank and Gansu Yasheng
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By analyzing existing cross correlation between Industrial Bank Co and Gansu Yasheng Industrial, you can compare the effects of market volatilities on Industrial Bank and Gansu Yasheng and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Industrial Bank with a short position of Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Gansu Yasheng.
Diversification Opportunities for Industrial Bank and Gansu Yasheng
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Industrial and Gansu is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial and Industrial Bank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Industrial Bank Co are associated (or correlated) with Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of Industrial Bank i.e., Industrial Bank and Gansu Yasheng go up and down completely randomly.
Pair Corralation between Industrial Bank and Gansu Yasheng
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.74 times more return on investment than Gansu Yasheng. However, Industrial Bank Co is 1.35 times less risky than Gansu Yasheng. It trades about 0.08 of its potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about 0.04 per unit of risk. If you would invest 1,597 in Industrial Bank Co on November 3, 2024 and sell it today you would earn a total of 434.00 from holding Industrial Bank Co or generate 27.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank Co vs. Gansu Yasheng Industrial
Performance |
| Timeline |
| Industrial Bank |
| Gansu Yasheng Industrial |
Industrial Bank and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Gansu Yasheng
The main advantage of trading using opposite Industrial Bank and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Gansu Yasheng can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Gansu Yasheng will offset losses from the drop in Gansu Yasheng's long position.| Industrial Bank vs. Shantui Construction Machinery | Industrial Bank vs. Sinosteel Engineering and | Industrial Bank vs. Qijing Machinery | Industrial Bank vs. Harbin Air Conditioning |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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